Anonymous -> maybe it's Xie/CentriumI know a number of people have people embroiled over the massive amount of Anonymous selling since the stock began its free fall, so I started looking into things a bit further. Right away I noticed that there are 4 main large shareholders, so I started looking into them first. The following is a summary of things that I noticed, but the main thing is that Centrium, and thus Xie, has been selling quite a bit.
Back in June 2013 Centrium held about 13.3M shares at a price of $0.75. Centrium now holds just 12,408,333 (17.21%) when looking at Morningstar’s ownership section for QSolar. AlphaNorth has barely changed, currently sitting at 10,120,200 shares (14.04%) from 10,304,700 during the same time frame which was the situation as at 17/06/14, again as Morningstar states. However, not much can be said about the ownership until the next report by the end of the week. Xie’s 6,666,667 shares can be converted into one share at a price of $1.00 for a period of up to 2 years so it is not in his best interests to convert and lose money.
I would like to add on two other points of note. The first being that Xie has sold nearly 925,000 shares since he came on board back in April 2013. The second is that the stock began trading on the Frankfurt exchange on April 10, 2014. Given that this opened up the gates and made the stock much more liquid, it could be possible that there a few day and swing traders out there with a good chunk of money and playing the spread, which is pretty substantial if you haven’t noticed. There were also a number of ‘arms length’ finders who helped QSolar get Xie on board and a number of other warrants and options (some at a strike of just $0.15) given out that were explicitly under 5% of the shares outstanding. If I were one of those lucky people to have owned those and missed the opportunity to cash them out at the sub $1.00 range, I would have been selling the whole way down. Especially if I saw that the CFO had sold out $31,000 worth of his position near the peak.
I have included a chart showing the buying and selling over the past year as per the report I just bought from Canadian Insider by Ink Research. It will be interesting to see what the numbers are after the (non)earnings release this week.
News release dated June 12, 2013, pg 1 "Mr. Xie is also the controlling shareholder of Centrium Enterprises Limited, a British Virgin Island company. Centrium currently holds 13,333,333 common shares and 6,666,667 warrants of QSolar, representing approximately 18.7% of the issued and outstanding common shares and 57.1% of the issued and outstanding warrants of QSolar."
Mngmt Info Circular dated Jun 24, 2013 